vineetsaini19 Started The Discussion:
Hi All,
In our organization, employees have accumulated 40 -50 PL's.
Now they are asking for encashment. Our HR Policy is also not clear on this.
29th May 2009 From India, Chandigarh

Hi Hi dear this is varied from organizatin to organization.You just check the previous Records of your organizaton and see how they managed to give. Regards SHYAM
29th May 2009 From India, Mumbai
First you have to frame HR policy for PL encashment, there is no statutory proceedure in leave encashment. Do as your management wish.
29th May 2009 From India, Hyderabad
Dear Vineet,
You have not mentioned the name of the Act under which your unit is covered i.e Punjab Shops Act,1958 or The Factories Act,1948.Leaves provisions are there in both the enactments. It is made clear that there is no provision in the labour laws for encashment of leave during service period but these are encashed at the time of making of full & final payment to the employee. Maximum no of leaves which can be encashed is 30 under EL head. If the mgt. wishes then this limit can be increased.


Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
29th May 2009 From India, Delhi
Dear An employee can accummulate 30 E L. Regards, R.N.Khola Skylark Associates, Gurgaon (Haryana) (Labour Law & Legal Consultants) 09810405361
29th May 2009 From India, Delhi
The organisation should make a leave policy wherein all the leaves like sick leave, casual leave, privilege leave or earned leave are clearly defined... As far as EL is concerned.....
if an employee, has 50 EL balance.. then a policy should be made that at the end of every year 20 EL should be kept balanced and that to EL can be availed only thrice in a year. So and employee can avail EL encashment thrice and that to keeping 20 balance...for that year....
29th May 2009 From India, Mumbai
dear vineet, greatings of the day, as per the punjab shops and commercial establishment act 1956, accimulation of pl is upto 30, so u can encash the balance leave as per ur organisation’s rule
30th May 2009 From India, Delhi
Dear Vineet,

Please find the below information on E.L.'s....



1. All permanent Staff.
2. EL is calculated for the days worked during the previous calendar year.


1. 1 El for every 20 working day (if 6 days per week);
2. EL will be credited to permanent staff only on completion of 1 yr of service with the Comp.
3. The days served under probation will be taken into account for EL eligibility.
4. EL can be availed only on prior approval.
5. Nation/Declared/Festival/Weekly off days can be prefixed and /or suffixed to EL.
6. Intervening National/Declared/Festival/Weekly Off days will NOT BE counted as part of the leave.
7. Half day of EL cannot be taken.
8.Balance EL remaining un-utilized as on 31st December can be carried forward.
9. EL can be accumulated for a maximum of 90 days.
10. Accumulated EL over and above 90 days can be encashed at the rate of last basic pay drawn on the 31st of march of during final settlement in case of resignation /retirement/termination.
11. At the time of resignation/retirement/termination the balance EL will be en cashed at the basic pay rate as on the day of resignation/retirement.
12. any absence of more than the number of EL sanctioned will be treated as leave without pay, unless given valid reasons to the management.

Jaya A.K.
30th May 2009 From India, Bangalore
Thanks for the info Jaya. But I've one doubt on point no 5 & 6,as in my organization, Public holiday can be excluded from PL, but we treat weekly of as Leave if a person is taking a PL continue (if WO coming inbetween his Leave period). So I want to know, is it a policy of your organization or Govt?? Also we can accumulate 100 days PL in a calender yr. More than 100 days PL will be encashed (it is our company policy).
30th May 2009 From India, Madras
Hi jaya,
Your info on ELs is crisp and clear! fantastic! Thanx very much!!
My plea to you (all the members of the CiteHr) is to answer the querries, if you know the correct answer only. My request to senior HRs to attend the querries for the benefit of the CiteHr members!! Try to provide the answers with suitable examples. Please do not neglect!!!
Please do the needful! Thanx once again to Jaya! keep doing such a good work! Have a great day!!
Satish Kumar Renikunta
30th May 2009 From India, Hyderabad

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